Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OFTEXAS AUSTIN GROVERSELLERS
*~TaRNLY OENLRAL
Honorable S. C. Xaailton
county kuaitor
pitor county
OdaaCIa, Tsxaa
Dear sirs
1 of tfe Bonds aad in- thereon ham been paid. 11 or thr Pond8 and ln- ' t thereon havs not been But tha.tot.al obliga- (total Bonds and in-. 8tlu 0uwanaidg i8 n8ea8a in tta5 .orri08 aon- litp or the use oertain publio or dseorlbeb. It will bs appre- ciatea ir you will inrorm me co5oclmin,j my rlshts and~auties aa county Auaitor under the r0il0ting clfcumtanoe6.
"This oounty has certain tunds on d8posft and 0tber runa8 hve8t8a in ainking rund ror th8 paywmt or prinaipal and lntersat or psrtlaular
bond lesuer.
"In the first inetanoe, the bonds and all interest thereon hove bean .mia in ruu,
::
xonorAbl8 I. C. Uaailton, County kudltor - pagO EI
wln the 8roond instan08, th8 8ua or ttiA suf- titanding bonds ~1~8 All lntarast which will beauma aus and payable thereon to the date8 0r their m8tur.
itioa are 1088 thmn the 8um8 evrilabl8, 1.8. OA depoalt and invested, in the slnlriq fund. *It ia propored to tmn8r8r the 8x08~888 oi
the available ~lnno8s cm funb8 OA aepo~lt AA~ 0r proo88dr 0r Inrostm8ota in the two iA8taaou
aboro cla#oriB8d, ruoh AxoeW118 te Bcm68 l nil- able for current uaa or the sbmd and Frid#ge Pus&
-AS COUtJ AUtIitW, do I ha~~.authOrit~ UAW Ii. B. S96, 46th Le(illaturA, a8 oAaAtO& Of~ondor any other aot, to approve vamvA$A &ri~g .oiieot.
to thras tranMer8, dwpitr Beation OS9 RCC?
*Do08 the Ctmeisrion~rs*~'Co@rS lmra Mthorlty to authorize these hsAn8fe$N:
Froa the inrorntion @iVOA in YOU1 1*tter,.w under- EtaAd th. #itllati@A t0 Be AA iDmJUA$ A8 t0 OAO 8iAkiA& iuod all or the Bond8 and the int8rrrt thereon hAM BMA I'uLly paid aod a oa8B, 8usplor rem&~A in raid 818kb& ilupd) .u to thr reoond lnatanoe, w8 undentmd that All.ot thO.bondA a~&.
lntore8t h8va a b8.n paid ln~ful.l, but'tho ,A%Ak&s~fppd,:.
owns certain l eourlties as isrve8tmratr ‘aad Pa* o*rkin- *. on d8p0rit, and.tbat tti0 tow 0r th4 0~8hwsd ~tnvortmnta eseeode the cuPmAt r8@irAd to my ofi AU of thm,~ ~ bond8 and lntrre8t whloh 8re OutAtAAdin(l.ar ObUgAtLem
against 8ald slaking run& Ala@, we~aa8uao that in oaoh lrutaaoo the kind of BOA~A orl&lAA&2~< fAtiti'vf8rA Read BOnd8. Th8 UOZUh8:OM iA t!iiA 8,&3h$OO ~tU?k OP tb bMi8 Of ~8lWUlptiOA thet bond8 WEQ&*fOS t&e ~Ul'pO88 Or t&O oon8truotlon, zaaintMfuio8 and d*8rtttion *~adaalsed, grave&d or pared road8 and tmApik88 or in *id thereor* aA authorized by rrtiole PSt(m~), Vernon’8 Aanotatsd Civil BtatUt88.
Via rsrsr you Hotam Bill MO. SSO, Oltepter 116;. Oenerttl and Bpeoial Ian of T8xa8, Rogul8r BeAaloA, Mtb L8gi#latun, ArtlolA 9SRa, Y. Ai C. 0.. whioh prorfQ.Ar
honoriibls J. C. iismllton, County Auditor - pegs 5
“&otion 1. section 1 of Chapter 16, Benat0 Bill Ho. 287, Aata OS the First Callad Serslsn ot’tho Thirty-Ninth Legislature, la nmsndad so as to
hareaftsr read as follows:
"'Eiectlon 1. Any oouuty, or any polltloal sub- division of a county, or say rosd dlotriot that has been or may haresitar be orsated by.any Gemma or Special Law, 1s heraby authorized lmoe bond8 for to ~the porpors 0r the con8trootloli, maintewn&s and operation of maeadaolted, grave10d or,pavo& Soad8 and tarnpikag , or in aid thsreor, in any amount hot to exased mm-fourth of the asseosod~valustion or the real propsrt~ oi such county oc pollticml subdivision or road dlstrlot, and to Lavy gad aol- loot ad valorcua tax@ pay intersst,w-srrmh bon$s end provld0 a s~lnklng fund for tho.redenptl0n thermoi. 3uch bonds .shsll be issued in tjta’marumr hsrelnaftsr provided, and as aontsmplatrd and author- lasd by SaOtlon 58, or Art&lb IS, of~ths~'QMt~titutlon Of' thls Stati. The tam ~Poli~tloal S\rbdirL*~lon, * a8 wed la thla Aot, shall bs oonstrurd taa?iAn any em- ialssioner~o ~raolnot or any Juetios pl'eoM0t.or i to be orsetad and’ estab- county, now or hereafter lishad. ?mvidad when the prlnofpll and slL Ia- tsrast.on said bond8 IM fully pa&I, in the oven* thsri is any eurplue rsmalhlng in the 8ink&$ run4 said rsma~Ai surplus not u08d in thr iull .pa an ,~ or the pr 1 and lntsfset’,oasald~ bond OB-, r’ and8 : bhs O~lln~~, _i pOL’~w3al e4bditirion eg : my b8 us the oounty,.or my local diotrlot t~t:.$w bam ore ; quay hi%?aattsr br created by ~a@y.:&aojadZ-or rpaolal ;‘~&iw Sor the gur~6so of the eou&$&&tiue, ~mint.seahor,
itid operation of, maoadamlr;e&&$e%d or parea:reatb and turnpikss In aid th+ut:,aq;nay b*:drtqr- mined by the Conunis8lone~l,CoUEt~aOr~q~ ooMt7~or the 0rfi0mO of any ~olltlo81 subdlvlrion of~a~~aopoty cr any said road alstriote
In applying ths provlslona oP.~t@ls A& to the first lwt,anom, that is when the bonds and lnrrr~et, thereon harm basn rully paid, ws rind thst outhorlty is given to a ooqty‘, p,olftloal subdivision of a oountj, nor any .road disttilot~@o usi such surplus that remains in the s%nk%Iq --fund far the pUl?iiOSe of the con8truction, lMintensnea,,and dpsration of mdcadamfzed, grswJed or paved reaps aad turnpikes, or in aid thereof as may be detsxmlnsd by thi.Comufas~onsrs* Court of *4 EoAoieble J. C. ifamilton, County i.uditor - pag&.'~ r::.
'the County or the OffiOial8 of a ~)olitioal subdirfalon or road dletrict, when a&the principal and ax1 o$ the tntere8t - have been fully paid.
St 18 therefore ths$oplnlon of this departme,nt that the Comissloaere* Court of Si%or County la authorized to ex:- pend suoh surplue funds as remain .ln$he ei~nklng rund
in the ,Lnstance mentiorred where all of th@ bOda8 and all of the intereat have been fully qd, and Sald'rundo * for the specific puryPsr of "the oonatrwtlon, main- ,be used tenance, and operation of macadrmlzed, grrrrrled or gave6 roada and turnpikes or in aid thsreof aa deter&md by aaid ComiSsionere* Court."
: .(' In conneatlon with this Natter, yoti rrfegrod to 889, Vernon*s Annotated Clvll Statuter, wCiahmud8 Nticlm ;as fo11ow8t . . ,' ,, . wNo oity or qowty trqa8urer Shall honor
any draft upon the interert end 8lskl43 l%md
prorldsd ior My of this bond8 of 8UUh 05ty .
or COUllty, nor pay out nor divert aAg of *8
~sem, except Sor the purpofwot print3 t48
loter:~ot on suoh bonds or f.og iedaamlng.t&S . .. SMiew Or Loi ~invartmat io. 8Uoh eeour$tEea ." atymy 'be provided by lay.* .", _ .c:'
'Tae provision8 of t&i* aitlola &e~~a$itoadl6 on4 to :the m~pendlture of rlnk~ hmbs. ,Under the 3&Oti'8ioJJs of l?. 8. S$W, Chaptiw 116, 48th Leegirhture~~(8upra), uh8n ail.of %hS pi%Wipal mad all 0,r the intera8U aB'bond8 h&r.
bern'fu.Xlg papaid iron 8 slnhihg fad, ,tho'sU~~lus fund' which;rsbains i.oSeS it8 id8LItltyiS a ?6iiIk&'iYnd? a& beOOme8 M *avaiPable fund", .th+ 18,~ fUi¶d in *hioh Oh8 '. money is SvailablS ror USE for puryomm dsslgnatadla
the Act. COASejUeAtly, the prO68iOn8 Si +StiCle~859,'7f. A. c. G., (sug~) would not be applicable said fudl,
Since the lict.authorizea the use of auoh surplua~ tunds (funda rmaini~ after all boAde and ixteraot have been paid) for the desiwated purposes we city (1013 no neoeeeltp.-for a transfer. ;is Lmretorore Lvilca ad, c instead of said fund re- taining its status as a sinking Lund, it bsoomse a fund available ior the dm&,nated use, end auoh l'und could ba known as W ulnklng~ Fund." You wo- .kvafltible Fund; fneteed cl *
goaoreb10 Jo C. Ilamiltorr, County Auditor - page 5
Then have b Bupar&tt: fund limited, in its use Sor wtha pur;iose of the oonatructlon,, SdLntqIlanoe , cmd operation of niacedemieed, grsreled or paved roa6e and turnpiken or in aid thereof.* the OXpenditUreS Of the monay might be a The &ccOUS!ting for greatar yrottlac mhen said funds, which play Ls used only for the fOrf3&OiS&$ are OO-miB&3d with it&B pUr,:OWJS, that may not be a~' reatrlctad as to their use. Since tile hoed end bridge Fund my be used for broader purz:ose8 than those denlgneted in the Act, we therefore advise thet those funds restrioted es to use for the designated purposes, should noi be transierred to the Road snd IJrfdge Fuml.
Wth reference to the seoond inst.&me, that is, where all of the bonds and tntsreat thereon have not been full ,-id, yet tha ocmbined assets of the 8lnking fund, exceed amount. ef- ,T’ d' tnclude cash end investments, bonds -nd interest yet to be pdid from seid fund, you are advised that the sot apeoifioally provide8 thet all of the lntere8t and all of the bonds must be the paidTad rurplus rkioh~maina artier all of the and all of the intereat hme been fully gal.1 is erailaDle for use for the designated .p;lrposea.
Therefore, it i8 the opinion of this department that eeld funds, in the second lnetanoe, cannot be wad Zor any purpo60 exoept to pay the iataruat on tutsknding bonda same, Or f;or the hmmtxuent in securitirr or for redeeming as krovidsd by law. Until all outhanding bonds anb in- terest thereon are full pa~from fund; It retains ito identity es a "8 nx ng fund-, dad the oounty treasurer T-5
could not honor P draft against aald sfnkin& fund for a traneier or for my purpose exoept to puy lnterast on ou~stw.tdlng bonds, as au- for redeeming m.me,~ or ror investment8 in esouritioe thorized bg Law (Artiole 4580, V. A.. C, 8. supn’).
Trustlag that the foregoing fully 8nawere your laqulr;T, *I) are
Yours Yerymulf